Gold bounces off lows, looks to regain $1,190

The ounce troy of the precious metal has managed to revert the initial drop to lows around $1,170, now looking to re-test $1,190 and above.

Gold weaker on USD, Fed

Prices for the yellow metal dropped to the $1,170 area earlier in the European morning, levels last seen in February, as traders continue to adjust to prospects of a stronger greenback and higher interest rates.

In that line, the buck ha climbed to the highest level since March 2003 earlier this week when measured by the US Dollar Index (DXY), turning USD-denominated assets more expensive and thus impacting on the demand for the yellow metal.

In fact, expectations of a Fed’s rate hike in December have been propping up the USD-rally as of late, while the perspective of an acceleration of consumer prices in response to Trump’s plan to boost fiscal spending has been also collaborating with the downbeat sentiment around Bullion.

Later in the NA session, US October’s Goods Trade Balance figures are due followed by Markit’s Services PMI.

Gold key levels

As of writing Gold is losing 0.12% at $1,187.85 facing the next support at $1,170.50 (low Nov.25) followed by $1,129.90 (78.6% Fibo retracement of the 2016 up move) and finally $1,073.70 (low Jan.14). On the upside, a surpass of $1,217.35 (high Nov.21) would expose $1,219.05 (50% Fibo retracement of the 2016 up move) and then $1,229.30 (high Nov.16).

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